• Expects FY26 EBITDA of $190 million - $210 million
• Cites higher depreciation, repairs and maintenance costs, and contract dispute
• Implementing cost reduction programs and asset sales to strengthen balance sheet

Alliance Aviation Services Ltd has advised that it expects its financial results for the year ending 30 June 2026 to be materially lower than analyst consensus estimates. The company is providing earnings guidance for the 2026 financial year, with EBITDA expected to be in the range of $190 million to $210 million, EBIT between $77 million and $85 million, and PBT of $46 million to $50 million. The difference from consensus estimates is due to a combination of factors, including increased aircraft and engine purchase prices leading to higher depreciation charges of $15 million, repairs and maintenance, compliance and logistics costs exceeding budget by $12 million, an unresolved $4.2 million contract dispute with a major customer, and additional costs of $3.5 million from the earlier-than-expected implementation of the AVIAN inventory management agreement. The company remains profitable and cash flow positive, in compliance with banking covenants, and has a strong balance sheet with net tangible assets of $466 million. Alliance is implementing a range of remedial actions, including a review of depreciation, cost reduction programs, a review of wet lease contracts, and the sale of non-core assets to strengthen the balance sheet further.

EBITDA $190 million - $210 million, EBIT $77 million - $85 million, PBT $46 million - $50 million for the 2026 financial year.

The company has a robust operating platform and is managing the impacts on the business as a priority, with services for customers unaffected. The company is also working with advisors on business unit performance, capital allocation, debt structure and funding costs, and investor relations.